Final answer:
Federal unemployment taxes payable are false considered long-term liabilities; they are short-term or current liabilities, settled typically within one year as part of the company's normal operating cycle.
"The correct option is approximately option B"
Step-by-step explanation:
The question is focused on accounting practices related to the classification of liabilities on a company's balance sheet. Specifically, it asks whether federal unemployment taxes payable are typically recorded as long-term liabilities.
The accurate response to this is false. Federal unemployment taxes payable are generally considered to be short-term or current liabilities since they are obligations that are expected to be settled within the company's normal operating cycle, typically within one year.
The Federal Unemployment Tax Act (FUTA) tax is a federal employer tax used to help fund state workforce agencies. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. In most cases, these taxes are payable throughout the year, and any balances due are expected to be paid annually. It is because of this short-term nature that they do no appear under long-term liabilities on the balance sheet.